Hong Kong Labour and Welfare Bureau: Cancelling offsetting mechanism of Mandatory Provident Fund will not increase business costs, government closely monitors subsidy program distribution.

According to the Smart Finance and Economics APP, the cancellation of the Mandatory Provident Fund "offsetting" arrangement in Hong Kong has taken effect since May 1st. The Secretary for Labour and Welfare of Hong Kong, Law Chi-Kwong, reiterated in response to questions from lawmakers at the Legislative Council meeting that the cancellation of the "offsetting" arrangement will not cause companies to lay off employees due to rising costs, and the Labour Department will continue to closely monitor the situation. He pointed out that the Hong Kong Special Administrative Region Government has introduced a 25-year subsidy program to support the cancellation of the "offsetting" arrangement, with a total amount of 33.6 billion Hong Kong dollars to alleviate employers' financial burden, and the government will monitor the distribution of subsidies closely.